Government to issue sovereign gold bonds twice in October. Announces interest rates for small schemes. Strategic sales in four PSUs approved. Ecommerce giants are using games to attract new customers. Etail platforms report an increase in sale. WeWork withdraws IPO filing. WeWork employees accuse Adam Neumann of unruly behaviour.
Table of Contents
It’s Raining Gold: The Government of India, in consultation with the Reserve Bank of India (RBI), has decided to issue Sovereign Gold Bonds twice in October, in keeping with the spirit of the festive season.
The move comes on the back of people’s shift in preference from physical gold to Sovereign Gold Bonds as a form of investment.
Here’s all you need to know about investing in Sovereign Gold Bonds this festive season. Financial Express
Money Incoming: The government revises the interest rates of small savings schemes on a quarterly basis, and this time around, the interest rates of schemes including PPF, Sukanya Samriddhi, NSC and Senior Citizen Savings Scheme have been kept unchanged.
PPF and NSC will continue to fetch 7.9%, while Sukanya Samriddhi Account and Senior Citizen Savings Scheme will continue to offer an interest rate of 8.6%. Livemint
Racing Ahead: A group of secretaries on Monday cleared strategic disinvestment in Bharat Petroleum and Shipping Corporation of India. Stake sales in power companies THDC India and Neepco were also approved. They also cleared 30% sale of the government’s equity in Container Corp of India.
Meanwhile...: The Air India Expression of Interest (EoI) paperwork is also likely to be finalised and issued soon, setting in motion the formal process for the state-owned airline’s sale.
The developments come as the government seeks to raise INR1.05L cr from disinvestment in the current financial year. ET Corporate Trends
The proposal will now be taken up by the Union Cabinet. If approved, this will be the biggest such exercise since the one undertaken by the Atal Bihari Vajpayee-government in early 2000.
BPCL En Route To Privatisation: Apart from the cabinet clearance, the sale of BPCL needs to be approved by both the Lok Sabha and Rajya Sabha as the company was formed by an act of Parliament.
The privatisation of BPCL, in which the government currently holds a 53.29% is likely to shake up the fuel retailing sector, at present dominated by state-owned firms. The Telegraph
Let’s Go Gamers: Ecommerce retailers in order to increase consumer engagement on their platforms have introduced games, quizzes and local language interface. The idea is to attract first-time internet users on their sites and try to turn them into potential customers.
This move is also mutually beneficial as customers get to collect points which are later converted into discount vouchers or coupons. ET Tech
Digital Festival: This festive sale the etail industry saw Gross Merchandise Value saw jump 77% YoY.
Etail platforms are likely to cross the $7bn mark in the month of October - a 60% jump from last year. YourStory
Stepping Back: Office-sharing startup, WeWork has withdrawn its S-1 filing.
Since the announcement of going public, WeWork has been in deep waters. The company revealed that it had incurred massive losses ahead of its IPO filing. In addition to this, they have been multiple speculations regarding the $47 bn valuation given by Softbank. Matters worsened when public investors revalued the company at $10 bn.
Although co-CEOs of the company remain positive stating “ We have every intention to operate WeWork as a public company and look forward to revisiting the public equity markets in the future.” CNBC
Meanwhile: Adam Neumann is under fire again after former WeWork employees have accused him of unethical behaviour at a workplace. Criticism of Neumann’s leadership has intensified after he stepped down as CEO. Business Insider
A New Storm is Brewing: Last week there was news of the Trump administration delisting Chinese firms from the US stock exchanges. However, those were quickly brushed aside by the US Treasury saying that there were no such plans currently.
Interestingly, however, the statement does not rule out the possibility of other courses of action and as per experts, if a war on capital is to be borne out, it would be exponentially more damaging to the global economy than the current level of the trade war. FX Empire
There are two major goals of the current US administration for proactive policy “decoupling” between the US and China. The first is to reorient U.S. Firms’ supply chains away from China to US sources. The second is to prevent China’s further progress in the global race for superiority in innovation and market dominance in advanced technology products and services.
However, it is needless to say that “the outcomes produced by the US strategy of proactive decoupling will serve to only make the US worse off and jeopardize global economic growth.” Read this article to know about the potential risks posed by the US-China Decoupling. Forbes
(Don't want to miss out on these End Of Day Wrap Ups? Subscribe Now to our WhatsApp Feed and get the day's Top Business stories straight on your favourite messaging app.)